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Rishi Khan
CEO Extreme Scale Solutions
Asked a question last year

In the EIDL loan docs it says: LIMITS ON DISTRIBUTION OF ASSETS · Borrower will not, without the prior written consent of SBA, make any distribution of Borrower’s assets, ... bonus, or otherwise, to any owner or partner or any of its employees. Does this mean I can't give employees their yearly bonus without consent of the SBA?

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That passage has caused some confusion for some of my friends.  However  its boilerplate language found in other SBA loans.   Essentially it means you still must make sound business decisions even though Uncle Sam just gave you alot of money.

Bonuses that are for work or services performed are fine.    But buying your secretary a Rolex watch or giving away the company Ferrari would not be acceptable.

Remember, Uncle Sam wants you to be around for 30 years to pay the loan back.  So smart prudent business moves only.